Your bookkeeper extracted a trial balance on 31 December 20X8 which failed to agree
by £330, a shortage on the credit side of the trial balance. A suspense account was opened for the
difference.
In January 20X9 the following errors made in 20X8 were found:
(i) Sales day book had been undercast by £100.
(ii) Sales of £250 to J Cantrell had been debited in error to J Cochrane’s account.
(iii) Rent account had been undercast by £70.
(iv) Discounts Received account had been undercast by £300.
(v) The sale of a motor vehicle at book value had been credited in error to Sales account £360.
You are required to:
(a) Show the journal entries necessary to correct the errors.
(6) Draw up the suspense account after the errors described have been corrected.
(c) If the net profit had previously been calculated at £7,900 for the year ended 31 December
20X8, show the calculations of the corrected net profit.